ARC of India Ltd, the first asset reconstruction company in the country, is planning to take off with buying out Rs 5,000 crore worth of bad assets from the system. About 50 sticky accounts worth Rs 20 crore and above have been identified which will be transferred to the ARC after it gets the licence from the Reserve Bank of India.
Most of these assets are common in the books of Industrial Development Bank of India, State Bank of India, IFCI and ICICI.
The company has its first board meeting on Monday to formalise the modalities of the assets buyout. A six-member core team which has been working on the project made a detailed presentation to the ARC board consisting of its non-executive chairman N Vaghul and other directors such as Deepak Parekh, PP Vora, PN Venkatachalam, JJ Irani, Ashok Ganguly and YH Malegam.
According to industry sources, the ARC is in the process of appointing independent chartered accountants and investment bankers for valuation of the assets.
